Adobe(US:ADBE) Financial Modeling Prep·2025-12-09 11:00Core Insights - Adobe Inc. is set to report its quarterly earnings on December 10, 2025, with analysts predicting an EPS of $5.39 and revenue of approximately $6.11 billion, marking its first $6 billion quarter [1][6] - The company is experiencing improved retention and accelerated enterprise adoption, indicating strengthening fundamentals despite a 27% drop in stock year-to-date [2] - Adobe's acquisition of Semrush for $1.9 billion aims to enhance its marketing tools and competitive position in the Creative Cloud market [3][6] Financial Metrics - Adobe's financial metrics show a P/E ratio of approximately 20.91, a price-to-sales ratio of about 6.12, and an enterprise value to sales ratio of roughly 6.20 [5][6] - The company's earnings yield is approximately 4.78%, and its debt-to-equity ratio stands at about 0.56, indicating a moderate level of debt [5] - Adobe has a current ratio of approximately 1.02, suggesting a slightly higher level of current assets compared to current liabilities [5] Market Position and Analyst Sentiment - Analysts have noted that Adobe's valuation multiples have decreased to levels typical of industrial sectors, making it potentially the most undervalued opportunity in the big tech sector [2] - Some analysts remain optimistic, labeling Adobe a "Strong Buy" due to resilient revenue and low valuation multiples for a SaaS leader, with potential for growth driven by generative AI and Firefly [4] - Citi has adjusted its price target for Adobe to $366, citing potential margin pressure from costs associated with AI and third-party large language models [3]